Net profit at H share Beijing Yanhua Petrochemical rose 38.9 per cent to 686.23 million yuan (about HK$638.19 million) last year - slightly higher than the prospectus forecast of 684 million yuan. The first results since the company listed last June also showed that turnover rose 4.2 per cent to 6.29 billion yuan. Earnings per share were up 14 per cent to 24 fen. A final dividend of 6.1 fen was proposed. Vice-chairman Cao Xianghong attributed the earnings growth to an increase in production output and sales, better operating efficiency and improved product mix. Although the regional financial crisis had triggered a price war in the Asian oil export market, which led to a decline in domestic petrochemical product prices, the company had benefited from a fall in the price of its principal raw materials, cracking feedstock, Mr Cao said. He said the company had virtually no exports, allowing it to be cushioned from the slowdown in regional demand. Yanhua, the mainland's largest resins and plastics manufacturer, said its operating margin was 17.6 per cent last year, up from 16.3 per cent the previous year. Average selling prices for its eight key products fell 7.2 per cent last year.